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TMI Blog2015 (3) TMI 891X X X X Extracts X X X X X X X X Extracts X X X X ..... nd turnover finally assessed by the sales tax authorities. Similar issue was also considered in the case of CIT Vs - Anandha Metal Corporation (2004 (7) TMI 49 - MADRAS High Court ), and held in favour of the assessee, which decision has been followed by the Tribunal in assessee's own case for the earlier year, wherein the matter was remanded back. - Decided against revenue. - T.C.A. No. 1526 of 2007 - - - Dated:- 25-2-2015 - R. Sudhakar And R. Karuppiah,JJ. For the Appellant : Mr. M. Swaminathan For the Respondents : Mr. T. N. Seetharaman JUDGMENT (Delivered By R. Sudhakar, J.) Aggrieved by the order of the Tribunal in dismissing the appeal filed by it, the appellant/Revenue is before this Court by filing the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2001 - 2,39,40,730.00 However, the physical inventory was found to be only Rs.1,17,53,991/=. In order to consider the discrepancies found during survey operations, a notice under Section 148 dated 18/04/2001 was served on the assessee on 21.04.2001. Notices u/s 143 (2) was issued on 03.11.2004 and duly served on the assessee, in response to which Shri Mhd.Khalilullah, CA was present from time to time and the case was heard. After verification of the details called for and as per the materials available on record and gathered during survey operations, assessment is completed as under. 1. Suppression of closing stock : During the course of assessment, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee's income on this count. 4. Aggrieved by the said order of assessment, the assessee moved before the CIT (Appeals), who held in favour of the assessee following the decision in Commissioner of Income Tax Vs Anandha Metal Corporation (2005 (273) ITR 262). The relevant portion of the order of the CIT (Appeals), for better clarity, is extracted hereunder :- During the course of hearing, the learned AR submitted that on identical facts my predecessor in office had deleted a similar addition vide his order (supra) and since AO has not pointed out any fresh facts, I should also follow the aforesaid decision of my predecessor. He reiterated the arguments which he had put during the course of hearing of appeal for assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of accounts or stock records of the assessee. It is also not the case that bank authorities have verified the assessee's stock in relation to the position at the close of the year. Under such circumstances, as expounded by the Hon'ble jurisdictional High Court in the case of CIT Vs N.Swamy 241 ITR 363, the burden was upon Revenue to prove that the stock submitted to the Revenue authorities was erroneous. This burden could not be discharged by merely referring to the statement of the assessee to third parties. Under the circumstances and respectfully following the precedent, we set aside the orders of authorities below and decide the issue in favour of the assessee. 10. Considering the present case on the prism of afor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the appeal has been allowed and, therefore, no uniformity has been maintained. 9. Though the above plea has been made by the Department, this Court is not inclined to entertain this appeal on the question of law raised at this point of time in view of the subsequent decision of this Court, which is also on the same issue, rendered in the case of Commissioner of Income Tax Vs Smt. Sakuntala Devi Khetan (2013 (352) ITR 484 (Mad)), wherein it has been clearly held that the Assessing Officer has to adopt the figures and turnover finally assessed by the sales tax authorities. Similar issue was also considered in the case of CIT Vs - Anandha Metal Corporation (2005 273 ITR 262 (Mad)), and held in favour of the assessee, which decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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